Putih mata

Nothing else can hardly express the dismay of seeing something that would turn out to be very good and valuable beyond one’s imaginations, to slip away like sand through the grip of a clenched fist.

Sin Chew story:

TRX attracts Indonesia’s leading property developer

1MDB debt issue News 2015-05-13 12:30
KUALA LUMPUR, May 13 (Bernama) — The Tun Razak Exchange (TRX) has signed on Indonesia’s leading property developer, Mulia Group, to develop its Signature Tower at the upcoming international financial district here.

In a statement today, it said 1MDB Real Estate Sdn Bhd (1MDB RE), the master developer of the TRX, signed the sale and purchase agreement with Mulia Group for the development rights to the plot.

The land transaction is valued at RM665 million, it said.

1MDB RE Chief Executive Officer Datuk Azmar Talib said, “We are pleased to have the Mulia Group on board towards realising the potential of the TRX. This significant investment underscores foreign investor confidence in Malaysia.

The Mulia Group, which has a leading market share for premium commercial properties in Jakarta, developed, owns and manages seven premier office buildings in Jakarta’s central business district.

It includes the Wisma Mulia 1 and 2, ranked among Jakarta’s tallest and most prestigious office buildings.

Mulia Group President Director and owner, Eka Tjandranegara said the company is excited to be embarking on the project to develop the Signature Tower to become Kuala Lumpur’s new landmark.

“We see TRX’s potential to further develop the city’s role as a financial capital. It also aids our growth and expansion plans.

“I am committed to personally seeing this project through, drawing from our vast experience,” he added.

Mulia Group now joins the list of investors such as Lend Lease International, a global property and infrastructure group developing the RM8 billion Lifestyle Quarter and Veolia Water Technologies, whose water management technology will halve potable water use in TRX, said the statement.

The statement also said a mass rapid transit (MRT) service would connect TRX to the upcoming High Speed Rail terminus station at Bandar Malaysia and linking it to Singapore’s financial centre.

TRX will also have direct link to key roads and major highways such as SMART, MEX, Jalan Tun Razak and Jalan Sultan Ismail, it added.


On Saturday, TH Chairman Dato’ Seri Azeez Rahim announced that the BoD of pilgrimage fund investment body of over 8 million depositors amongst Malaysian Muslim decided to hive off the 1.6acre acquired from TRX. This is despite obtaining a discount of RM 32 million from the original offer price.

It is a totally missed opportunity for TH to make good money from a high value premium investment.

Many reacted in the overtone of emotional sentiment after a blog irresponsibly posted papers to TH BoD on the internal evaluation for the proposal, which was designed solely to create anguish and public outcry.

The parcel for the 90 storey TRX  signature tower was offered to TH at the price of RM 578 million. However, TH rejected the offer.

Today, Mulia Group of Bakrie Group in Indonesia swooped the piece and paid RM 665 million for it. That is a cool RM 87 million, for just mere flipping exercise.

There is a market talk that Mulia Group might take up the serviced apartment parcel which TH had to relinquish with haste over the weekend.

Published in: on May 13, 2015 at 17:00  Comments (9)  

Missed opportunity

This afternoon Tabung Haji Chairman Dato’ Sri Azeez Rahim announced that the BoD of the pilgrimage investment body decided to hive off the controversial 1.6 acre plot in Tun Razak Exchange (TRX), amidst the serious contentious overtone of the business deal of the acquisition.

NST story:

Tabung Haji to sell off 1MDB land

BY ARNAZ M. KHAIRUL – 9 MAY 2015 @ 3:07 PM

KUALA LUMPUR: The plot of prime land in the Kuala Lumpur city centre which Lembaga Tabung Haji (LTH) purchased from 1Malaysia Development Berhad (1MDB) is to be sold to the highest of three bidders within the next two weeks, its chairman Datuk Seri Abdul Azeez Abdul Rahim announced today.

Azeez said the LTH board had unanimously agreed upon the sale of the 0.63ha plot of land, located at the Tun Razak Exchange (TRX), in a meeting attended by all 11 board members this morning, although a similar meeting last night had seen the board unanimously agree to proceed with plans to develop the land as everything was above board, despite criticism from various quarters over the purchase.

“This morning, I received a call from the Prime Minister (Datuk Seri Najib Razak). I must stress that this was not a directive, but he advised us to sell the plot of land seeing that the issue had created too much defamatory rumours”.

“The board met this morning and we decided that in the best interest of the public and Tabung Haji depositors that we heed that advice,” said Azeez.

The land which was purchased at RM188.5 million will now be sold to the highest of three interested bidders with LTH set to make a minimum profit of RM5 million. Azeez said there was no criteria set on the bidders being Muslim or not.

“The process of this purchase had adhered to all our regular procedures in procurement and investment. It was scrutinised by the board since the proposal was first made in April 2013.

Everything was above board and we decided that this was a worthwhile investment which would profit LTH. It was purely a commercial decision,” said Azeez. He stressed that Tan Sri Ismee Ismail, who is LTH chief executive officer and managing director as well as 1MDB director, had abstained from being part of discussions regarding the purchase as he was privy to information from both parties.

These matters, he said, were overseen by deputy chief executive officer Datuk Johan Abdullah.

“There was no political motivation in the purchase of this land, but as it turned out LTH has been dragged into this issue by those who have politicised it. It is an investment in property, the same as investments we have made both locally and abroad. It doesn’t in any way have an effect on the dividends or deposits of the public in LTH.

“In fact, it is such investments which allow us to provide dividends and subsidise pilgrimage for our depositors. We also reassure our depositors that none of their money is affected as their deposits are guaranteed by the government. This will not stop us from making further investments in real estate for the benefit of our depositors.” Azeez said LTH will continue to invest in other properties, stating that the fund still has an allocation of more than RM5 billion in which they can explore further real estate investments.

Bloggers had previously revealed documents believed to be from LTH pertaining to the purchase, and Azeez said the matter had called for an internal investigation.

“It was stated that these documents were made available to them by LTH. But this is not the case and police reports have been lodged against these bloggers,” said Abdul Azeez.

Read More : http://www.nst.com.my/node/83671


The decision to sell off the said prime land in a hugely potential new growth international financial district of Kuala Lumpur is very tactical and deemed to be a political reaction, instead of one based on the principles and interests of  business.

The fact is that 1MDB, which obtained the land and the planning right to develop into such a new high end and premium development, offered the parcel to TH back in 2013 at a price of RM220 million.

1MDB Profit and Loss FY 2013 (pp 1)

1MDB Profit and Loss FY 2013 (pp 1)

1MDB Profit and Loss FY 2013 (pp 2)

1MDB Profit and Loss FY 2013 (pp 2)

That was when the Malaysian Government strategic investment corporation was not deep in trouble as what it is now. Infact, for FY2013 1MDB posted a healthy accumulated net profit of RM 832 million.

The cash position of 1MDB then was also solid. Hence when 1MDB started to talk with TH for the said plot and another one, it was another ordinary business activity.


TH was in good financial position then and still now. The returns derived from investments which bore profits for TH has been on a steady incremental rate. This include properties abroad.

Hence, it is reflective in the annual dividends and bonus enjoyed by TH depositors for the past seven years.


That could only mean that TH BoD and investment advisory panel have been making sound business decisions and took calculated risks, which correspond to the healthy growth in net returns.

That was also even when palm oil prices dropped steeply in 2012 and has not gone up to a comfortable level in previous years.

The decision to take up 1MDB’s offer is purely business in nature and the plot has huge potential. Considering that the gross development cost (minus the land) for a land which obtained a plot ratio planning approval of 10.4:1, At RM 575 psf, the construction cost is calculated at RM 420 million.

The Tun Razak Exchange (TRX) master plan

It is valued that the said proposed building could brought upon RM 850 million in value. That is 13% return on investment per annum.

The rental income by 2018-9 could also fetch in the neighbourhood of RM 70-75 million per annum.

TH ought to be looking for more opportunities like this one presented by 1MDB, for the purpose of strategic investments. Azeez pronounced in the media conference that TH could go up to RM 5 billion in investment in real estate and property.

The Tun Razak Exchange (TRX) master plan

Even if TH allocate 40% of that for green-fields, the strategic pilgrim investment corporation should be able to acquire all these plots and hold them into land bank, for mid to long term development programs. This is because TH liquidity position is very healthy and all these could be acquired for cash.

RM 2 billion in premium and potentially high value green-fields with an average ROI of 12% per annum should translate to an additional quarter of million Ringgit attributable as dividends to the over 8 million TH depositors.

1MDB financial obligations

Nevermind the endless arguments and ramblings on why TH should be acquiring the parcel from 1MDB and why at that price.

The fact is that the opportunity for such a green-field  potential high value development was only opened for 1MDB and this deal for TH was below market price. This is on top that TH had its usual internal processes to evaluate the proposal and arrived to the decision to venture into this.

No different from other investment opportunities which now bore fruits, which include returns paid in cash through dividends.

It is obviously a missed opportunity, in a presentation of an incomplete business story laced with emotional overtone which is clearly designed for the masses to be riled and rise and do a political coup d’etat.

For the sake of the over 8 million depositors of Tabung Haji, let us pray that this missed opportunity is now offered to another Bumiputera corporation. Let it be a consortium of Bumiputera property developers and/or investors.

This agenda of political coup d’etat should not not be at the expense of the Bumiputera economic agenda. Otherwise, it is a sin of a different degree and dimension.

*Updated 1500hrs 11 May 2015

A very interested opinion by Dato’ Mohamed Salleh Said Keruak on TH’s acquisition of the said land and the opportunity that landed.


May 11, 2015

Wee Ka Siong of MCA and Lim Kit Siang of DAP have referred to my Blog posting where I was alleged to have said that the Lembaga Tabung Haji land purchase from 1MDB was discussed at the Cabinet meeting. I did not say that. What I asked was whether the Cabinet ever discussed 1MDB during the weekly Cabinet meetings.

Tabung Haji has its own Board that runs the organisation and decides its policies. Not every operational matter of every organisation is discussed at the Cabinet. If not the Cabinet meetings would take days.

The issue seems to be regarding Tabung Haji paying 1MDB a discounted price of RM188.5 million for a plot of land at the Tun Razak Exchange (TRX) or RM2,774 per sq ft. What Tabung Haji paid was for converted land with title, planning approval and infrastructure. This is relatively cheap if compared to similar transactions concluded in the Golden Triangle.

Malaysian Resources Corporation Berhad (MRCB) bought the 1.8661 acre German Embassy land for RM259.15 million or RM3,188 per sq ft. This is about 6% higher than the market value of the land based on the appraisal conducted by CH Williams Talhar & Wong and Raine & Horne International Zaki & Partners.

SP Setia Bhd paid RM294.97million or RM2,200 per sq ft for the 1.22 ha British High Commission land in Jalan Ampang.

Oxley Holdings (M) Sdn Bhd, a unit of Singapore-based developer Oxley Holdings Ltd, purchased 1.3 ha in Jalan Ampang for RM446.7million or RM3,300 per sq ft. KSK Group Bhd paid RM568 million or RM3,299 per sq ft for a 1.6 ha parcel in Jalan Conlay.

The vendor was Suasana Simfoni Sdn Bhd, a subsidiary of Singapore-listed UOL Group Ltd.

If the issue is that Tabung Haji paid too much for the land or that it was a bad investment then this is not so, as the many other transactions around that area have proven. And the land deal was negotiated before 1MDB even became an issue and not after that.


Published in: on May 9, 2015 at 23:59  Comments (35)  

Bring in the Marines

Finally, Government has brought in the MOF in-house consulting group which has tremendous illustrious experience in capital restructuring, debt recovery and cash-flow management, as a solution to resolve 1MDB’s woes which drew too much attention and a lot of flak from so many quarters.

The Star story:

Prokhas steps into 1MDB

Wednesday, 8 April 2015

PETALING JAYA: Prokhas Sdn Bhd, the in-house restructuring outfit of the Finance Ministry (MoF), has been tasked to help sister company 1Malaysia Development Bhd (1MDB) deal with cash-flow problems tied to its debt obligations.

It is learnt that Prokhas was roped in to assist 1MDB, which needs about RM5bil this year to meet its debt obligations.

“Prokhas has come into the picture, which is why CIMB Investment Bank Bhd that was appointed two weeks ago to look into the sale of 1MDB’s energy assets has been out of the job,” said a source.

The amount due this year is largely to cover the payment of a US$975mil term loan taken by 1MDB Energy Holdings Ltd that falls due on Aug 31 this year. At the current exchange rate of 3.64 to the US dollar, the maturing term loan is valued at RM3.55bil.

1MDB Energy Holdings is the energy unit of 1MDB that was supposed to list by the first quarter of this year under the new name of Edra Global Energy Bhd. But 1MDB withdrew its proposal on Feb 28 this year because it could not meet the listing requirements.

“CIMB was roped in to arrange for the sale of Edra Energy, which is about the only asset that can be sold immediately to raise funds for 1MDB to help meet its debt obligations,” said a banker.

But its mandate was terminated on April 1 – just a week after the investment bank was appointed.

The other portion of the RM5bil obligation this year comes from interest cost totalling around RM1.4bil on all other outstanding loans that 1MDB has taken over the last five years.

1MDB is RM41.9bil in debt to fund a buying binge over the past five years, as the company built up a portfolio of power and energy assets, as well as amassing prime landbanks earmarked for future development.

While the power plants acquired from Genting Bhd and Tanjong Plc are generating some cashflow for the company, it is not enough to cover its interest cost and planned development expenditure.

Last year, 1MDB had to defer a debt payment taken to finance the purchase of Tanjong’s power plants in 2012 for RM8.5bil.

An outstanding amount of RM2bil was finally settled with the assistance of billionaire T. Ananda Krishnan, who owns Tanjong, after two delays.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah had, in his winding-up speech in Parliament on March 25, said that the Government had formed a special task force to look into 1MDB’s performance, as well as the debts borne by the firm.

He had earlier in March told Parliament that 1MDB’s financial position was “unsustainable” with a cashflow problem.

The Government, Husni said, had already extended RM950mil to 1MDB as a “standby credit” facility to address its short-term financial needs.

The firm generated a revenue of RM4.26bil for the year ended March 31, 2014, but reported a loss of RM665mil as finance cost ballooned to RM2.4bil.

As it is, 1MDB’s total US dollar-denominated borrowings stand at a staggering US$7.5bil, or RM27bil, at the current exchange rate.

Based on these outstanding debts, 1MDB’s interest payment cost amounts to at least RM1.2bil a year over the next seven years.

In 2022, the massive US$3bil bonds taken by 1MDB Global Investment Ltd will reach maturity.

1MDB is 100%-owned by the MoF, but unlike other Government-linked investment companies, the ministry has never had board representation in the company.

But as worries about 1MDB’s financial obligations are reaching a boiling point, the Government has taken a more active role.

Prokhas is a special project outfit under the MoF and is involved in various corporate restructuring work for the Government. The company was set up in 2005 to take over the role of Danaharta Nasional Bhd.


Pro-Khas was an SPV created by then Minister of Finance Tun Dr. Mahathir Mohamad as a solution after the Asian Financial Crisis of 1997-8 saw the 38 banks and financial institutions were laden with bad debts and non performing loans.

It came into operation the day Tun Dr. Mahathir took the reign of the MOF and the economy, which was bleeding due to the currency attack mounted by hedge fund managers led by George Soros.

All of these bad debts and NPLs were taken over by Danaharta and systematically hived off, so that the financial institutions could focus on their business as banks and finance companies.

Amongst the outcomes are the banking system and capital-debt market did not crash and completely paralysed commerce and the economy. The rationalisation of the banking-financial system and capital-debt market provided opportunity where local banks are merged into six groups and the fittest stockbrokers survived.

That provided opportunities for new universal stockbroking licenses were issued then onwards and boutique investment bankers started to colour the capital-debt market, which provided the catalyst to commerce and expand the economy.

This is something that Prime Minister Dato’ Seri Mohd. Najib Tun Razak should have taken much earlier and quashing the opportunity for so much loose talk and speculations been made about the Government’s strategic investment house.

Pro-Khas is a very familiar and credible entity to resolve capital-debt related issues, which was initiated by the Government and put the debt and capital market back on track in a short span of time.

The same time, transparency is required to absolve the leadership and 1MDB which undergone so much attention in bad light and put 1MDB back on track.

Amongst many other programs designed for the majority of Malaysians in the rural areas, 1MDB has been providing a lot CSR projects, especially in utmost remote and under developed areas and settlements. It specifically enabled the fast track solution which alleviated the delivery of infrastructure such as electrification, processed water and communications.

This initiative is a good move indeed. Never the less, the story about 1MDB still needed to be told for all the right reasons.

Published in: on April 8, 2015 at 11:00  Comments (4)  

Better late than never

Settling debts is noble despite it is late. War bonds raised for the ‘Great War’ almost a hundred years ago was finally paid, yesterday.

London Evening Standard:

UK debt from First World War finally repaid

Debt repaid: a poppy installation at the Tower of London to commemorate the centenary of the First World War last year (Picture: Getty)

Published: 09 March 2015 Updated: 12:44, 09 March 2015
Britain’s outstanding First World War debt has finally been repaid after the Chancellor redeemed £1.9billion from a bond.

The 3.5% War Loan was the most widely held of any UK Government bond with more than 120,000 holders, or 60% of all holdings of government gilts.

It comes as the Government looks to remove all other undated gilts in its portfolio, some of which have origins going back to the 18th century.

About 97,000 of these investors held less than £1,000 and almost 38,000 holders owned less than £100, according to the Treasury.

The 3.5% War Loan was issued in 1932 by the then-chancellor Neville Chamberlain in exchange for the 5% War Loan 1929-47, which was issued in 1917 as part of the effort to raise money to pay for the First World War.

Related stories
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The Debt Management Office estimates that Britain has paid some £5.5 billion in total interest on the 5% and 3.5% war loans since 1917.

Current low interest rates mean the Government is able to refinance the debt with new bonds.

The Treasury is also looking to remove all six of the other remaining undated gilts in its portfolio, including some debt originally issued in the era of the South Sea Bubble in the 18th century.

The plan to repay the First World War debt was announced in December, when Chancellor George Osborne said: “We can, at last, pay off the debts Britain incurred to fight the First World War.

“It is a sign of our fiscal credibility and it’s a good deal for this generation of taxpayers. It’s also another fitting way to remember that extraordinary sacrifice of the past.”


Imagine the war bonds and promisories  for World War II and the two Gulf Wars. The future generation of a great nation is eternally debated for the politics of previous leaders, who defined the “Britannia shall rule the waves” maxim.

Published in: on March 10, 2015 at 13:30  Comments (5)  

Muhyiddin: Ketua Audit Negara wajar semak 1MDB

Timbalan Perdana Menteri Tan Sri Muhyiddin Mohd. Yassin menyokong penuh saranan agar Ketua Audit Negara menyemak secara telus dan menyeluruh semua kedudukan kewangan, asset dan liabiliti, kegiatan, transaksi dan kommitmen 1MDB, agar segala tohmahan dan andaian dapat di jawab secara muktamad.

Kenyataan Muhyiddin:


Dalam mesyuarat Jemaah Menteri pada 4 Mac 2015, Jemaah Menteri telah diberikan taklimat oleh 1MDB dan firma auditnya Deloitte berhubung beberapa dakwaan yang dibuat terhadap dana pelaburan strategik itu. Saya menyambut baik arahan YAB Perdana Menteri supaya Ketua Audit Negara mengesahkan secara bebas akaun 1MDB yang mana laporannya akan diserahkan kepada Jawatankuasa Kira-Kira Wang Negara untuk penelitian lanjut.

Saya berpandangan Ketua Audit Negara wajar mengaudit akaun 1MDB secara telus, bebas dan menyeluruh dengan meneliti akaun 1MDB sejak awal penubuhannya.

Ini kerana beberapa tuduhan penyelewengan yang dilemparkan terhadap dana pelaburan strategik itu adalah berhubung urusniaga yang dibuat sejak tahun 2009 yang tidak termasuk dalam tahun kewangan 2013 yang diaudit oleh firma Deloitte.

Ini termasuk tuduhan berlakunya penyelewengan dalam usahasama antara 1MDB dan PetroSaudi International seperti yang ditimbulkan oleh beberapa portal berita. Saya percaya pengauditan yang telus, bebas dan menyeluruh adalah penting untuk membersihkan nama dana pelaburan strategik milik kerajaan itu daripada sebarang tuduhan penyelewengan dan salah laku.

Oleh kerana dakwaan terhadap 1MDB melibatkan urusniaga korporat yang agak kompleks serta menyentuh kepentingan negara dan kerajaan, Ketua Audit Negara mestilah diberikan sokongan sumber, kepakaran dan tempoh masa yang tidak terlalu lama untuk menyiapkan satu laporan yang lengkap dan komprehensif. Ini penting untuk memulihkan reputasi 1MDB dan mengembalikan keyakinan pelabur.

Audit forensik hendaklah dilaksanakan untuk menentukan tiada penyelewengan kewangan berlaku dalam urusniaga 1MDB. Pada masa yang sama, Jawatankuasa Kira-Kira Wang Negara juga boleh memulakan siasatannya sendiri tanpa perlu menunggu Laporan Ketua Audit Negara disiapkan.

1MDB mesti memandang serius semua dakwaan yang dilemparkan terhadapnya terutama di media sosial. Untuk membersihkan nama 1MDB, tindakan undang–undang hendaklah diambil terhadap sesiapa sahaja yang melemparkan tuduhan tidak berasas.

Lembaga Pengarah 1MDB juga perlu mengambil tanggungjawab bersama dan bersedia menghadapi tindakan undang-undang sekiranya hasil siasatan mendapati terdapat kecuaian atau penyelewengan dalam urusniaga 1MDB.

Lembaga Pengarah perlu memberikan penjelasan tentang beberapa urusniaga yang kelihatan tidak memberikan keuntungan jangka panjang kepada syarikat dan kerajaan. Kerajaan juga akan menanggung kerugian jika penstrukturan semula 1MDB melibatkan penjualan tanah TRX dan Bandar Malaysia yang diperolehi pada harga yang rendah daripada kerajaan dan hasil penjualan digunakan untuk membayar hutang syarikat.

Saya juga ingin menegaskan bahawa sebarang usaha untuk menangani isu 1MDB tidak wajar melibatkan tindakan menyelamat (bail out) syarikat tersebut dengan menggunakan dana awam.


Timbalan Perdana Menteri


Ini merupakan sejajar dengan kommitmen yang dibuat Perdana Menteri Dato’ Sri Mohd. Najib Tun Razak mengenai akaun dan kedudukan kewangan, asset dan liabiliti 1MDB perlu disahkan secara bebas oleh Ketua Audit Negara dan juruaudit bebas dan laporan itu akan disemak oleh Jawatankuasa Kira-Kira Awam (PAC).

Laporan Utusan Malaysia semalam:

Sahkan akaun 1MDB- PM arahkan Ketua Audit Negara,

-Laporan akan diserah kepada PAC

05 Mac 2015 1:08 AM

KUALA LUMPUR 4 Mac – Perdana Menteri, Datuk Seri Najib Tun Razak telah mengarahkan Ketua Audit Negara untuk mengesahkan secara bebas akaun 1Malaysia Development Bhd (1MDB).
Menurut kenyataan Pejabat Perdana Menteri hari ini, laporan Ketua Audit Negara akan dise­rahkan untuk pemeriksaan telus kepada Jawatankuasa Kira-kira Awam (PAC) yang bersifat bipar­tisan sepenuhnya dan mencerminkan komposisi Parlimen.
Ia menyatakan Perdana Menteri telah memberitahu Kabinet mengenai langkah itu.
“Jika terbukti ada salah laku, undang-undang akan dikuatkuasakan tanpa pengecualian,” kata Najib.
Kenyataan itu menerangkan perdana menteri hari ini memang­gil 1MDB dan juruaudit mereka, Deloitte menghadap Kabinet berikutan laporan media baru-baru ini berkaitan syarikat pembangunan strategik milik penuh kerajaan itu.
Setelah menerima penjelasan dari 1MDB dan Deloitte, Kabinet melahirkan keyakinan bahawa tidak terdapat sebarang salah laku dalam 1MDB, dan hasrat mereka supaya syarikat itu dibenar melaksanakan hasil semakan strategiknya yang dicadangkan,” kata kenyataan itu.
Walaupun demikian, ia mengambil perhatian bahawa kerajaan telah meminta Ketua Audit Negara memeriksa akaun 1MDB sebagai langkah lanjutan.
Ia berkata, 1MDB telah memberi taklimat mengenai situa­si semasanya dan menjawab siri pertanyaan dikemukakan oleh menteri-menteri kabinet, termasuk Perdana Menteri dan Timbalan Perdana Menteri Tan Sri Muhyiddin Yassin.
Deloitte katanya, memberi keterangan menyeluruh tentang urusan mereka dengan 1MDB dan mengesahkan bahawa firma itu telah mengaudit dan mengesahkan akaun syarikat berkenaan.
“Kabinet diberitahu bahawa dakwaan baru-baru ini yang ditujukan kepada 1MDB, adalah berkaitan transaksi pihak ketiga seperti Petrosaudi, bukan 1MDB.
“Pelaburan relevan 1MDB telah dikembalikan sepenuhnya dengan keuntungan signifikan yang tersedia diaudit,” menurut kenyataan itu.
Sementara itu, Presiden dan Pengarah Eksekutif Kumpulan 1Malaysia Development Berhad (1MDB), Arul Kanda berkata, adalah jelas semua serangan yang ditujukan kepada 1MDB hanya bermotif politik dan sengaja dibuat sebagai percubaan untuk melemahkan syarikat dengan menyebarkan dakwaan tidak berasas dan lebih bersifat spekulasi yang seterus­nya akan memberi kesan kepada ekonomi.
“Sehubungan itu, 1MDB amat mengalu-alukan permintaan Per­dana Menteri, Datuk Seri Najib Tun Razak supaya Ketua Audit Negara mengesahkan akaun 1MDB, yang mana sebelum ini telah diaudit oleh Deloitte yang juga satu daripada firma terkemuka dunia.
“Kami akan memberi kerjasama sepenuhnya kepada Ketua Audit Negara dan berharap hasil penemuannya dapat menjawab segala spekulasi yang ditimbulkan baru-baru ini,” katanya dalam kenyataan di sini hari ini.
– See more at: http://www.utusan.com.my/berita/nasional/sahkan-akaun-1mdb-1.66125/najib-tun-razak-1.66130#sthash.HtUaMbbU.dpuf


Apa yang menarik ialah keyakinan yang diunjurkan oleh Muhyiddin sebagai orang nombor dua dalam Kabinet dan Kerajaan dimana dana awam tidak akan digunakan untuk menyelamat (bail out) mana mana entiti dalam kumpulan 1MDB, sekiranya perlu berlaku sebarang penstrukturan modal, kedudukan kewangan dan asset, kommitmen dan liabiliti 1MDB.

Konglomerat yang bermula dari dana bernilai RM4 billion sebagai entiti pelaburan strategik semasa PM Najib mula mengambil alih sebagai Perdana Menteri ke VI,  kini mempunyai asset dinilaikan melebihi RM50 billion.

Antara program program pendidikan asas dan khidmat rakyat (CSR) oleh 1MDB

1MDB merupakan entiti kommersial pelaburan strategik Kerajaan, yang begitu kontroversi dan hebat dibincangkan oleh banyak pihak secara aktif terutama media baru dan sosial. Ianya lebih menarik perhatian umum apabila sering diulas secara kritikal oleh Perdana Menteri Malaysia IV Tun Dr. Mahathir Mohamad dan Mantan Menteri Kewangan Tun Daim Zainuddin.

Ianya dijadikan modal politik Pembangkang walaupun hakikatnya 1MDB banyak melakukan program program khidmat rakyat (CSR) melalui Yayasan 1MDB, yang dananya datang dari keuntungan melalui pelaburan dan pulangan 1MDB.

Setakat ini Kerajaan gagal menangani persepsi negatif mengenai 1MDB dan penjelasan yang diusahakan setakat ini terutama oleh politikus Kerajaan sebenarnya makin mengelirukan.

Ketua Pengarah Eksekutif 1MDB Arul Kanda bersama Timblan Menteri Kewangan Dato’ Hj. Ahmad b. Hj. Maslan

Ketua Pengarah Eksekutif 1MDB Arul Kanda telah memberikan terumramah eksklusif kepada Mingguan Malaysia, dalam usaha untuk meningkatkan kefahaman rakyat mengenai konglomerat pelaburan strategik Kerajaan itu, tiga minggu lepas.

1MDB tamatkan spekulasi

15 Februari 2015 12:09 AM

Kuala Lumpur 12 Februari 2015 TEMUBUAL bersama Presiden & Ketua
MUKADIMAH : Sebagai sebuah syarikat pembangunan strategik dimiliki sepenuhnya oleh kerajaan Malaysia, 1MDB dilanda satu demi satu isu daripada pelbagai entiti, yang kebanyakannya mendapat maklumat daripada pihak ketiga.
“Tiada siapa mahu datang bertanya terus kepada kami, walaupun kami membuka pintu untuk memberi penerangan,’’ kata Presiden dan Pengarah Eksekutif Kumpulan 1MDB, Arul Kanda . Jumaat lalu, beliau mengumumkan pembayaran penuh pinjamannya berjumlah RM2 bilion, sekali gus membuktikan dakwaan pelbagai pihak kononnya 1MDB gagal berbuat demikian, hanya spekulasi semata-mata. Dalam wawancara eksklusif bersama Mingguan Malaysia, yang merupakan sesi sulungnya dengan media sejak menerajui 1MDB pada 5 Januari lalu, Arul menyampaikan mesej yang terang dan jelas arah tuju 1MDB di bawah kepimpinannya. Arul menjawab dengan penuh keyakinan terhadap soalan-soalan yang dikemukakan dan sengaja tidak diberikan awal oleh Pengarang Berita Ekonomi, Johardy Ibrahim , Penolong Pengarang Berita Ekonomi, Fauzi Jaafar dan wartawan Zunaidah Zain on dalam wawancara di pejabatnya, kelmarin.
MINGGUAN : 1MDB melunaskan pembayaran hutang RM2 bilion, yang didakwa pihak tertentu sebagai “tertunggak” dan bakal diisytihar NPL (hutang tidak berbayar). Apa signifikannya?
Arul Kanda : Pinjaman tersebut dibayar lebih awal dari tarikh akhir, sejajar dengan perjanjian kemudahan pinjaman. Dengan lunasnya pembayaran ini, saya menegaskan komitmen 1MDB akan terus memenuhi kehendak hutang kami, apabila tiba tempoh akhirnya. Yang paling penting, apa yang kami lakukan Jumaat lalu, diharap akan menamatkan segala spekulasi yang tersebar tentang kami. Terdapat banyak laporan tentang perkara itu, antaranya hutang 1MDB akan dilangsaikan oleh ahli perniagaan terkemuka, Ananda Krishnan.
Sejujurnya, Ananda sendiri pun tidak pernah bercakap apa-apa tentang perkara ini. Ini adalah satu spekulasi yang dimulakan oleh pihak ketiga. Fikirlah. RM2 bilion adalah satu jumlah yang besar dan ini sepatutnya melibatkan RHB dan Maybank tetapi mengapa mereka tidak membuat apa-apa pengumuman rasmi berkenaan perkara ini? Apa yang saya boleh katakan, kami akan berjumpa dengan pemberi hutang apabila ia sudah sampai tarikh akhir. Dan Jumaat lepas, telah kami buktikan.
Laporan New York Times minggu lalu, mengaitkan saudara dengan Jho Low. Sebenarnya, apa hubungan saudara dengan hartawan itu?
Arul Kanda : Ya, saya pernah berjumpa dengannya di Kuala Lumpur. Ini sama seperti saya berjumpa dengan orang lain yang terlibat dalam dunia perniagaan kerana saya berada di sektor perbankan. Tetapi Jho Low tiada kaitan dengan 1MDB dan saya tidak menjumpai sebarang dokumen yang mengaitkannya dengan syarikat ini. Malah, dakwaan yang mengatakan ayahnya atau kawannya menjadi pengarah di 1MDB juga tidak tepat.
Ini satu lagi spekulasi. Jujurnya sebagai ahli perniagaan, saya tidak mahu memberi reaksi kepada sebarang aktiviti yang menjurus kepada berita-berita berbentuk spekulasi. Tetapi saya juga mempunyai kuasa untuk menghentikan apa jua cerita dibawa mereka. Apa yang boleh saya buat ialah akan terus bercakap secara jujur dan menerangkan fakta yang betul.
Nama saudara dikaitkan. Kenapa tidak mengambil tindakan menyaman pihak yang membuat tuduhan sedemikian?
Arul Kanda : Saya pernah terfikir (untuk menyaman) tetapi kita ada bisnes dan kita perlu pastikan projek kita dapat berjalan dengan baik. Kita tidak mahu semua perkara ini mengganggu apa yang telah kita rancangkan. Ini kerana, politik bukan bidang kepakaran kita. Sebenarnya, saya agak kecewa kerana setelah kita buka ruang untuk mereka datang berjumpa, masih ada lagi kenyataan-kenyataan tidak berasas dikeluarkan tanpa menyemak fakta yang betul dengan pihak kami.
Saya hanya boleh membuat kesimpulan bahawa kenyataan yang dikeluarkan itu lebih cenderung kepada politik semata-mata. Saya amat terbuka dan sudah berjumpa dengan semua media yang mengkritik kami. Tetapi pihak satu lagi, tidak berbuat demikian. Apa lagi yang boleh saya buat untuk menjelaskan kedudukan sebenar. Apa yang saya maksudkan “terbuka” dengan mereka adalah untuk mendapatkan maklumat yang betul tetapi bukanlah seperti menganjurkan debat atau forum. Malangnya, kadang kala bila saya buat kenyataan, ia diputar belit.
Selain itu, satu lagi perkara yang ingin disentuh ialah akaun tahunan syarikat. Walaupun, 1MDB sebenarnya ialah syarikat swasta dan bukan syarikat disenaraikan tetapi laporan akaun tahunan syarikat dibuat dengan teliti dan mempunyai 175 muka surat. Tetapi apabila kami terlalu terbuka pula, ada pula yang menyerang dengan menggunakan laporan tersebut.
Adakah 1MDB menetapkan tempoh tertentu untuk saudara pulihkan syarikat?
Arul Kanda : Lembaga Pengarah memberi ruang kepada saya untuk menilai segala keperluan dan mengambil kira pelbagai aspek sebelum mengambil langkah tertentu untuk pulihkan syarikat. Tiada sebarang tempoh masa diberikan untuk tindakan ini diambil. Untuk itu, saya melihat kepada semua aset yang ada demi manfaat rakyat. Cabaran sentiasa ada kerana kami sedar mempunyai hutang yang perlu dilunaskan dan akan memastikan dapat menjana segala aset itu dengan baik.
Apakah perancangan syarikat bagi tahun kewangan 2015 ini?
Arul Kanda : Kami akan meneruskan tanggungjawab untuk meningkatkan nilai ke atas aset. Saya tahu dan sedar disebabkan salah faham yang timbul, orang lebih banyak bercakap tentang hutang kami berbanding aset-aset yang dimiliki, misalnya loji jana kuasa, yang mana telah selesai penggabungannya, macam-macam boleh dibuat seperti disenaraikan, jual syarikat atau jual stesen jana kuasa persendirian ini. TRX pula, bila tanah plot dah sedia, kami boleh jualkan kepada pihak swasta yang berminat.
Apa yang saudara maksudkan “Lembaga Pengarah memberi ruang menilai segala keperluan”?
Arul Kanda : Maksud saya ialah kami juga mungkin mempertimbangkan beberapa keputusan yang sukar demi manfaat pemegang saham kerana mempunyai tanggungjawab yang perlu dipenuhi. Antara yang mungkin dilaksanakan termasuklah melupuskan aset, membatalkan projek, mempercepatkan projek atau letak lebih ekuiti ke atas sesebuah projek itu supaya lebih cepat dijalankan. Keputusan ini bukan satu perkara yang mudah kerana kami memiliki tanggungjawab yang harus dilaksanakan.
Lupuskan aset luar negara dahulu?
Arul Kanda : Saya tidak mahu membuat sebarang kenyataan berbentuk spekulasi berhubung keputusan yang akan dibuat. Kami sangat terbuka berhubung perkara ini. Saya memberi contoh, jika kita membeli sekeping tanah untuk disimpan selama lima tahun bagi meningkatkan nilai tetapi pada tahun ketiga kita berdepan masalah hutang dan perlu melangsaikan bayaran tersebut, jadi tindakan yang boleh diambil, mungkin kita terpaksa menjual tanah tersebut. Bagaimanapun, dalam langkah melupuskan aset, seperti yang dinyatakan, kita bercakap tentang aset yang pelbagai dan nilai pada aset tersebut. Tidak semestinya pada aset-aset luar negara sahaja.
Misalnya dengan aset tenaga yang kita ada, macam-macam kita boleh buat sebagai langkah untuk menjana hasil daripada aset tersebut, begitu juga dengan projek TRX dan juga Bandar Malaysia. Bagaimanapun, bagi projek Bandar Malaysia, ia mungkin mengambil masa kerana kita perlu mengalih tapak pangkalan tentera di Sungai Besi itu. Tetapi kita yakin apabila adanya kemudahan kereta api berkelajuan tinggi di Bandar Malaysia kelak, kita tidak dapat bayangkan nilai yang dapat dijana daripada pembangunan tersebut.
Saya ingin memberi contoh bagaimana tiga projek utama di Kuala Lumpur iaitu KLCC, Mid Valley dan KL Sentral yang menyumbang kepada peningkatan nilai. Kuala Lumpur perlu dibentuk semula dan pembangunan baharu seperti ini dapat memberi manfaat kepada negara dan juga rakyat khususnya.
Menyentuh tentang Pulau Cayman, masih ramai yang tertanya-tanya apakah rasionalnya meletakkan duit di situ?
Arul Kanda : Sebenarnya, kita tidak meletakkan duit di Pulau Cayman. Kita mendaftarkan dana di situ dan pelaburannya dibuat di seluruh dunia. Ini penting untuk kita fahami, bukannya duit yang kita laburkan di Pulau Cayman tetapi adalah dana yang didaftarkan.
Duit tidak diletakkan di Cayman?
Arul Kanda : Seperti yang dinyatakan, pelaburan itu dibuat di seluruh dunia dalam pelbagai instrumen dan lokasi. Cayman ialah satu daripada pengawal selia dana terbaik di dunia untuk membuka dana. Ini adalah kebenarannya dan kita boleh lihat beribu-ribu dana didaftarkan di Pulau Cayman. Dengan mengambil contoh Sime Darby, ia disenaraikan di Malaysia tetapi asetnya tidak semestinya hanya ada di negara ini sebaliknya ada di negara lain seperti Indonesia dan Papua New Guinea. Sama juga seperti dana, dibuka di bawah pengawal selia Pulau Cayman tetapi duit dilaburkan di seluruh dunia.
Saudara sedar kontroversi mengaitkan Cayman sebagai tempat menyorok wang oleh mafia?
Arul Kanda : Kita sedar ada yang mempertikaikan kenapa kita melabur dalam dolar Amerika Syarikat (AS), kenapa bukan di Malaysia dan kenapa bukan dalam Ringgit. Cuba lihat pada penyata kira-kira 1MDB, kami mempunyai AS$6.5 bilion (RM23.41 bilion) sukuk antarabangsa yang diterbitkan dan bila dapat liabiliti dalam dolar AS, kita perlu uruskan pendedahan mata wang memandangkan kita perlu bayar bon itu setiap tiga atau enam bulan. Jika kita simpan aset berasaskan dolar AS, secara tidak langsung akan mengurangkan risiko ke atas mata wang. Ini merupakan sebab mengapa wang itu disimpan dalam dana dolar AS dan ternyata mempunyai kelebihan dari segi cukai dengan berpandukan bidang kuasa dana.
Terutama dalam keadaan sekarang dengan penyusutan ringgit, secara tidak langsung memberi kelebihan kepada syarikat. Kita mempunyai aset dalam dolar AS dan dapat menebusnya untuk kegunaan kita. Saya difahamkan terdapat lebih 200 syarikat Malaysia bertaraf global yang juga mempunyai dana di situ. Jadi tidak timbul soal “mafia”. Saya pasti pihak berkuasa Pulau Cayman juga akan sedih jika mendengar tentang perkara seperti ini. Tidak ada apa-apa hendak disorokkan kerana semuanya dinyatakan dengan jelas dalam akaun tahunan.
Apa jadi pada 60 peratus pelaburan yang ditebus tahun lalu?
Arul Kanda : Kita sudah tebus 60 peratus daripada pelaburan itu tahun lalu dan penggunaannya semua dinyatakan dengan jelas dalam laporan tahunan itu. Tetapi malangnya, tiada siapa mahu melihatnya dari sudut positif. Kenapa orang yang menuduh ini tidak bercakap tentang ke mana duit itu, sebaliknya melihat tentang RM2.3 bilion. Tidak ada apa hendak disembunyikan. Menyentuh tentang baki 40 peratus itu pula, kita akan masukkan dalam laporan akaun selepas ini. Adalah tidak adil apabila orang mengharapkan kami untuk melakukan sesuatu yang di luar batasan kerana kami juga seperti syarikat-syarikat lain yang tertakluk kepada peraturan dan undang-undang syarikat.
Menyentuh tentang penyenaraian unit tenaga 1MDB, ada laporan media menyatakan akan dibatalkan kerana 1MDB akan menghentikan cadangan terbitan sukuk sebanyak RM8.4 bilion. Adakah ini juga satu spekulasi?
Arul Kanda : Maaf, saya tidak boleh memberi komen berhubung perkara ini kerana tertakluk di bawah garis panduan Suruhanjaya Sekuriti. Apa yang boleh saya nyatakan ialah tugas kami membangunkan aset di mana aset itu boleh dijanakan dan kami sentiasa mencari peluang terbaik untuk menjana aset berkenaan seperti aset-aset tenaga. Kami sentiasa meneroka peluang bagi meningkatkan nilai kepada pemegang saham.
Bagaimana dengan laporan tentang 1MDB akan menarik diri daripada projek jana kuasa 3B?

Arul Kanda : Sekali lagi, ini juga satu spekulasi dan kami tidak boleh mengeluarkan kenyataan lagi. Jika sesuai, kami akan umumkan kemudian, tetapi buat masa ini, kami tidak dibenarkan untuk berbuat demikian.
Bagaimana aset-aset milik 1MDB?
Arul Kanda : Berkaitan dengan aset, kami sentiasa mengambil kira kepentingan MoF dan juga rakyat. Sehingga 31 Mac 2014, aset dan liabiliti kami berjumlah RM51.4 bilion dan RM48.9 bilion.
Sebenarnya, apa yang orang di luar sana boleh harapkan kepada 1MDB

Arul Kanda : Kami akan terus fokus kepada perniagaan. Disebabkan isu hutang, orang lupa tentang asas syarikat ini, bahawa kami mempunyai 5,500 MegaWatt tenaga, antara terbesar di negara ini, terbesar di Mesir dan Bangladesh. Kami melihat ini satu pencapaian utama bagi syarikat.
Di samping itu, tanah kami di TRX yang berkeluasan 28.33 hektar mempunyai saiz yang hampir sama dengan KL Sentral. Cuba tengok KL Sentral 12 tahun dahulu dan sekarang, jauh berbeza. TRX akan dilengkapi stesen MRT terbesar di Kuala Lumpur dan kami juga akan menjalin kerjasama dengan sebuah syarikat pemaju hartanah yang berpangkalan di Australia, Lend Lease tidak lama lagi untuk pembangunan 6.88 hektar membabitkan pembinaan hotel, tiga menara kediaman dan pusat beli-belah dengan GDV dianggarkan RM8 bilion.
Bandar Malaysia pula yang melibatkan kawasan seluas 202.3 hektar di tengah bandar raya Kuala Lumpur akan menjadi hab komersial, budaya, pendidikan, sosial dan pengangkutan yang mesra alam. Apabila kereta api berkelajuan tinggi ditempatkan di situ, ini akan dihubungkan dengan MRT bersama pusat beli-belah Pavilion KL, KLCC, hotel termasuk pembinaan rumah mampu milik.
Orang sentiasa beranggapan hari ini dapat tanah terus boleh dibangunkan sedangkan ia melibatkan banyak kerja yang perlu diselesaikan pada peringkat awal seperti mendapatkan kelulusan Dewan Bandaraya Kuala Lumpur (DBKL) dan berbincang dengan pihak Telekom Malaysia atau Indah Water Konsortium. Kita tidak boleh terus bangunkan dengan serta-merta tanpa ada perancangan.
Bagi saya, TRX dan Bandar Malaysia ialah projek multi dekad yang dibangunkan setakat ini. TRX sebagai contoh akan disambung dengan terowong Smart dan kami juga sebenarnya pada masa sama cuba untuk memperbaiki Jalan Tun Razak. Sekarang kerja-kerja di TRX masih di peringkat gali tanah dan akan ambil masa untuk disiapkan. Dalam beberapa bulan akan datang, kami akan buat pengumuman terbaharu tentang rakan kerjasama.
Apakah 1MDB ada sasaran tertentu untuk dijadikan rakan kerjasama projek ini?
Arul Kanda : 1MDB amat terbuka dalam soal ini dan kita keluarkan permohonan cadangan (ROP) kepada mana-mana syarikat sama ada tempatan atau luar negara untuk membuat bidaan pada tender projek.
TRX ini akan menjadi platform awal bagi 1MDB untuk membawa masuk pelaburan langsung asing (FDI) ke negara ini, yang juga merupakan antara tugas utama kami.
– See more at: http://www.utusan.com.my/rencana/1mdb-tamatkan-spekulasi-1.59530#sthash.G6ZGPny1.dpuf


Dalam masa yang sama, pihak 1MDB yakin serangan Pembangkang keatas konglomerat pelaburan strategik Kerajaan itu berupa niat jahat politik yang sememangnya berpotensi untuk menjejaskan ekonomi, terutama dalam cabaran ekonomi global semasa yang terjejas akibat kesan penurunan harga pasaran minyak.

Kenyataan Ketua Pengarah Eksekutif 1MDB Arul Kanda semalam mengenai ini:

Statement by 1MDB President & Group Executive Director Arul Kanda

“It is clear that the attacks being directed at 1MDB are politically motivated. These are deliberately coordinated attempts to undermine the company by spreading unsubstantiated allegations and speculation, which in turn could potentially harm the economy.

“In light of this, 1MDB welcomes the Prime Minister’s request for the Auditor General to verify 1MDB’s accounts, which have been audited by Deloitte, one of the world’s leading firms. We will cooperate fully with the Auditor General and hope that the outcome of his findings put to rest recent speculation.”


Maklumat dari laporan Ketua Audit Negara dan juruaudit bebas ini kelak perlu diuruskan secara bijak untuk memberikan kefahaman bagi lebih ramai orang untuk faham keadaan sebenar. Pengurusan kommunikasi perlu effektif, progressif dan disesuaikan dengan kehendak masyarakat Malaysia sebagai pihak berkepentingan (stakeholders).

*Dikemaskini tengah malam

Published in: on March 6, 2015 at 19:29  Comments (23)  

Cameron learns from Najib

In the run up of the May 2015 GE, British Prime Minister David Cameron promises young Brits an affordable housing ownership program, which Prime Minister Dato’ Sri Mohd. Najib Tun Razak introduced three years earlier.

BBC.com story:

2 March 2015 Last updated at 15:10

Cameron promises 200,000 starter homes if Tories win election

David Cameron tries his hand at carpentry with apprentice Kial Foye during a visit to the Barratt Homes Evolve development in Grays, Essex

Why can’t the UK build 240,000 houses a year?
Some 200,000 homes will be made available to first-time buyers in England by 2020 if the Tories win the election, David Cameron has promised.

The coalition government has already announced plans for 100,000 cut-price homes for people aged under 40.

The PM said the Tories would double it if elected, to give more people the security of owning their own home.

Labour said the plan was inadequate and housing groups warned affordable rented schemes would lose out as a result.

First-time buyers under the age of 40 in England can now register to buy new homes at a discount of up to 20% off the normal price.

Fees waived
The offer is part of the government’s new “starter homes” scheme to encourage home ownership and construction on previously used “brownfield” land.

The 20% discount will be paid for by waiving the fees homebuilders have to pay to local authorities under so-called Section 106 agreements, amounting to at least £45,000 per dwelling on brownfield sites.

The Conservatives say homes worth £250,000 outside London – or £450,000 in London – would be eligible for the scheme and that first-time buyers would have to repay the 20% price advantage if they sold within five years.

Jump media playerMedia player helpOut of media player. Press enter to return or tab to continue.
David Cameron: “In every single decade since the 1960’s, we’ve built fewer homes”
In a speech in Colchester, Mr Cameron said there was “a particular kind of security that comes with owning your own home” that “too many people have been denied”, due to what he described as a “quiet crisis” in affordability.

“The young people in their 20s and 30s still living with their parents, desperately saving for their own place. The couple who want a child but can’t afford to upsize – even though they have both got have full-on, full-time jobs. It shouldn’t be this way.

“Our goal is a Britain where everyone who works hard can have a home of their own.”

‘Not shoeboxes’
He said Britain’s biggest builders, including Barratt and Taylor Wimpey, had signed up for the expanded scheme and it would be designed so that new properties could not be “snapped up by buy-to-let landlords”.

Young households graphic
He added: “We’ve shown what we expect starter homes to look like – not rabbit hutches or shoeboxes, but decent, well-built, homes with gardens – places to start and raise a family.”

Mr Cameron said the UK had suffered from a “chronic” shortage of housebuilding for decades but that action taken during the past five years meant the UK was on course to deliver 200,000 new homes a year by 2017.

He said a future Conservative government would also extend the Help to Buy scheme in England – intended to help those trying to get on the housing ladder who could afford mortgage repayments but were struggling to raise a deposit – until 2020 and make it easier for council house tenants to buy their homes.

‘Disappearing dream’
But Labour said the government had presided over the lowest levels of housebuilding since the 1920s and home ownership was at its lowest level for three decades.

Speaking at an event in Brighton, Labour leader Ed Miliband said there would be “no greater priority” for an incoming Labour government than housing.

“David Cameron’s plan on housing has failed Britain and failed families,” he said. “For far too many people, the dream of home ownership is disappearing into the distance.”


Launching the program Perumahan Rakyat 1 Malaysia (PR1MA) in Batu Pahat at the launch of Jelajah Janji DiTepati on 7 April 2012.

This 22 March 2013 Bernama story is PR1MA CEO Dato’ Abdul Mutalib Alias’s statement on affordable housing, which are houses 20% cheaper off market price.

Najib to launch affordable housing project in Kuantan

Published: 22 March 2013 3:14 PM

PETALING JAYA, March 22 — Prime Minister Datuk Seri Najib Razak will launch the Perumahan Rakyat 1 Malaysia (PR1MA) Kuantan at the Jelajah Janji Ditepati (Promises Fulfilled Roadshow) tomorrow.

The housing project, comprising federal, state and private land, will cater for the housing needs of the people across three major constituencies in the Kuantan area, namely Bandar Kuantan, Indera Mahkota and Paya Besar.

Established by the government to promote home ownership among Malaysians in the middle-income group, the announcement of PR1MA Kuantan is timely as it is strategically located within the three constituencies with a total population of 467,000 people, PR1MA chief executive officer Datuk Abdul Mutalib Alias told a press conference today.

He said the demand for affordable houses has been increasing steadily in Pahang with the bustling petrochemical industry in Gebeng, automotive industry in Pekan and the growing township of Kuantan.
“With the price of a double-storey house in Kuantan already reaching RM500,000 in some areas, PR1MA Kuantan will help fulfil some of the demand for affordable housing for middle-income earners in an area that is essential to the success of the East Coast Economic Region,” he said.

PR1MA Kuantan will be an integrated development, comprising PR1MA homes, public parks, retail outlets, a shopping mall, offices and other public and communal amenities.

It is easily accessible via Jalan Gambang, Jalan Tanjung Lumpur and Jalan Pekan, Abdul Mutalib said.

The project will be a mix of double-storey and apartment homes, with the starting price expected to be at least 20 per cent lower than the prevailing market price in Kuantan.

Abdul Mutalib said the demand for affordable houses by middle-income earners in the Kuantan area is among the top five demand areas in Malaysia, on par with Kuching and Kota Kinabalu.

He said PR1MA Kuantan will be the first integrated development of its kind that would offer affordable lifestyle homes in a safe and secured environment.

Abdul Mutalib encouraged eligible buyers to quickly register their name for PR1MA Kuantan homes through its website at http://www.pri1ma.my. — Bernama


Unlike PM Cameron, ‘Affordable housing’ was never an election agenda for PM Najib. Actually, he already had ‘affordable homes’ programs launched, especially for the lower middle class and young families as far back as December 2011.

Star’s story:

Wednesday December 14, 2011

Najib: More firms willing to build affordable homes



SEREMBAN: More companies and developers have indicated their interest to take part in the Government’s initiative to build quality affordable homes under the 1Malaysia Housing Programme (PR1MA).

Revealing this, Prime Minister Datuk Seri Najib Razak said the response from the private sector had been extremely encouraging and he expressed confidence the Government’s desire to build more such homes in urban areas for the middle income group would be realised.

“More (companies and developers) will be coming onboard,” he told reporters after launching Sime Darby’s PR1MA project in Labu near here yesterday.
Najib said PR1MA Corp was scouring the country looking for areas where more such projects could be carried out.

Launched last year, PR1MA is a scheme to provide affordable quality homes within the Klang Valley for young Malaysians who earn RM3,000 or less.

Depending on the location, the houses would be priced between RM150,000 and RM300,000 while the minimum size would be 243sq m.

Sime Darby, in collaboration with PR1MA Corp, will build some 2,200 dwellings on a 220ha area in Bandar Ainsdale in Labu near here.

It will build 420 units under phase one of the project, with half being landed strata homes and the remaining 210 units comprising low-rise town houses or cluster homes.

The units would also have innovative sustainable features such as a common solar system and rainwater harvesting systems.

In total, it planned to build 21,120 affordable quality homes, roughly half of which would be landed properties, in various such schemes here and in Selangor.

Najib expressed hope that construction would be completed within 16 months.


PM Najib also considered cheaper housing for civil servants.

Rakyat Post story:

PUBLISHED: Oct 10, 2014 08:24pmUPDATED: Oct 10, 2014 08:24pm

More affordable housing in new budget

In Buget 2015, more affordable homes will be built, while the government has also made it easier for individuals to own homes.
KUALA LUMPUR Oct 10, 2014:
To address the issue of home ownership at affordable prices, Prime Minister Datuk Seri Najib Razak announced several projects and programmes under Budget 2015.
In his speech, Najib announced the building of 80,000 affordable housing units under the 1Malaysia People’s Housing Programme (PR1MA) with an allocation of RM1.3 billion.
“To enable more people to own houses, the ceiling of household income is raised from RM8,000 to RM10,000.
“In addition, a Rent-To-Own Scheme will be introduced specifically for individuals who are unable to obtain bank financing.”
He also announced that the National Housing Department (JPN) is to build 26,000 units under the People’s Housing Programme (PPR) with an allocation of RM644 million; and Syarikat Perumahan Negara Berhad (SPNB) to build 12,000 units of Rumah Mesra Rakyat (RMR) and 5,000 units of Rumah Idaman Rakyat.

“SPNB will also build 20,000 units of Rumah Aspirasi Rakyat on privately-owned land,” he added.
To enable more people to own their first home and reduce the cost of buying a house, Najib said the government has agreed to extend the 50% stamp duty exemption on instruments of transfer and loan agreements and increase the purchase limit from RM400,000 to RM500,000.
“This exemption will be given until Dec 31, 2016.
“He also announced that the government had agreed to improve Skim Rumah Pertamaku under the purview of Cagamas by raising the ceiling price to RM500,000 in line with the stamp duty exemption.
“In addition, the age of borrowers to qualify for the scheme will be increased from 35 to 40 years.”
Najib also stressed that to make the living conditions more comfortable for the rakyat who live in public low-cost housing, RM40 million will be allocated under the Public Housing Maintenance Programme, while RM100 million will also be allocated under the 1Malaysia Maintenance Fund for maintenance of private low-cost housing.
For civil servants, Najib stressed that the government was committed to increasing the construction of houses under 1Malaysia Civil Servants’ Housing or PPA1M.
“Currently, 10,639 PPA1M houses have been approved for construction.
“In 2015, to enable more civil servants to buy PPA1M houses, the government agrees to build an additional 5,380 units, including 1,600 units in Putrajaya, Bukit Jalil (1,530 units), Papar, Sabah (1,290 units) and Bukit Pinang, Kedah (960 units),” he said.
In addition, Najib said that the government would improve PPA1M by reducing the minimum price of houses currently at RM150,000 to RM90,000 per unit with a minimum floor area of 850 square feet; raising the qualifying requirement of household income from RM8,000 to RM10,000 per month; and by providing a facilitation fund of up to 25% from the project cost for developers participating in the scheme.
“Comfortable homes will contribute to increased productivity. For this, the government allocates RM500 million for repair and maintenance that will be implemented in stages for military, police, teachers’ and medical staff’s quarters nationwide,” he said.
In addition, Najib announced that RM105 million is allocated to Ministry of Urban Wellbeing, Housing and Local Government for maintenance of government quarters under the MyBeautiful Malaysia Programme covering 126 locations.


It is refreshing that the Melayus are far ahead in thoughts for the rakyat, even ahead of the Orang Putehs considering Britain is known for its social consciousness for her people.

Published in: on March 2, 2015 at 23:59  Comments (7)  

AWO’s bullish thoughts on Moody’s high rated Malaysian economy

We received this brief ten hours ago from Chartered Accountant-turned-Minister in-charge of EPU Dato’ Seri Abdul Wahid Omar on the recent Moody’s bullish rating on the Malaysian economy and what Malaysian business could do to help sustain:

As Malaysians enjoy lower RON95 petrol price of RM1.70 per litre effective 1 February, some may have missed credit rating agency Moody’s announcement  on 30 January 2015 that affirmed Malaysia’s A3 rating & Positive outlook.

An “A” rating is considered upper-medium grade & is subject to low credit risk. Positive outlook refers to a likely rating upgrade over the medium term (12-18 months).

Here’s my 1-2-3 take on Malaysia’s rating.

1)There are 3 global rating agencies ; Moody’s, Standard & Poor’s and Fitch . Moody’s and S&P are the two main agencies reatained by most global issuers. All three rating agencies have rated Malaysia at A3/A- but with different rating outlook. Moody’s is Positive, S&P Stable and Fitch Negative. At A3/A-, Malaysia has the 2nd highest credit rating in ASEAN after Singapore (AAA), and one notch above Thailand (BAA1), two notches above Philippines (BAA2) and three notches above Indonesia (BAA3). Brunei is not rated. Other ASEAN countries are below BAA3 (minimum level considered to be investment grade).
2) Moody’s is generally positive on Malaysia due to the Govt’s commitment to fiscal deficit reduction & reforms and Malaysia’s fundamental credit strengths – notably macroeconomics stability, domestic capital market depth and favourable Govt debt structure. This provides resistance to a more adverse external economic environment, lower oil prices & global financial market volatility. Moody’s acknowledged they have seen ongoing fiscal deficit reduction & actual implementation of significant reform. This includes, among others, the managed float system for petrol & diesel in Dec 2014 that effectively eliminated subsidies, reduced Govt reliance on oil revenues to 30% in 2014 and implementation of GST come 1 April 2015 which will broaden our revenue base. Meaning Malaysia has been doing the right things & potentially could have been upgraded if not for the recent sudden drop in global oil prices & market volatility. On economic fundamentals, Moody’s expects Malaysia to continue to exhibit faster growth, lower inflation & a more robust external payments (current account in Balance of Payments) position than other A rated countries. Other strengths include favourable demographics, resurgence of private investment since ETP, macroenonomic stability anchored by credibility of BNM & Govt’s favourable debt structure & depth of onshore capital markets. Only 3% of Govt debt is denominated in foreign currency.
3) What are Moody’s concerns?
First is the high level of household debt which is mitigated by low unemployment & high level of household financial assets. Second is the external payments position but Moody’s believes that Malaysia is likely to sustain a structural current account surplus & that foreign currency reserve adequacy will remain in line with other A rated countries. Third on clarity of off-budget financing entities to analyse contingent risks to Govt.

Notwithstanding the concerns, the Posiitive outlook reflects confidence that fiscal consolidation will be sustained despite prolonged low commodity prices. What could move the rating up?

Continued track record in fiscal deficit reduction and stability in the affordability & refinancing of Govt debt.

What could move the rating down? Worsening of fiscal deficit or crystallisation of large contingent liabilities.

What can Malaysian businesses/corporates do to help? Well, there are many things businesses/corporates can do to help the country / economy.

Top three;

1) Help grow the economy. Optimise your expenditure. Please spend domestically if you can afford it. Invest domestically.
2) Be generous to your employees. If you make more profit, share it with them. They can do a better job in stimulating private consumption out of the bonus paid.
3) Be a responsible corporate citizen. Dont evade tax, dont bribe to get contracts, embrace inclusiveness & sustainability.

Let us all do our respective parts to navigate through 2015 & beyond Thank you & with best regards.


Published in: on February 3, 2015 at 09:30  Comments (13)  

NGO NGO Melayu bangkit untuk semua

Tahun 2015 datang dengan sedikit kelegaaan bagi pengguna pengguna di Malaysia apabila harga runcit petrol RON 95 dan Diesel diturunkan sebanyak 35 sen dan 30 sen, sekaligus memberi kelegaan kepada semua.

Laporan Utusan Malaysia:

RON95 dan RON97 turun 35 sen, 
diesel turun 30 sen

MOHD. ASRON MUSTAPHA | 01 Januari 2015 2:57 AM
203 1 Google +0
KUALA LUMPUR 31 Dis. – Rakyat Malaysia menyambut Tahun Baharu 2015 dengan berita gembira apabila kerajaan mengumumkan harga petrol RON95 diturunkan sebanyak 35 sen menjadikan harga pasaran hanya RM1.91 seliter.

Hasan Malek
Pengumuman yang ditunggu-tunggu seluruh rakyat Malaysia itu disifatkan tepat pada masanya, bagi memberi keceriaan kepada orang ramai memandangkan tahun 2014 diakhiri dengan berita duka akibat bencana banjir.
Langkah itu juga membuktikan pendekatan kaedah apungan terkawal yang diambil kerajaan dalam menentukan harga minyak di peringkat runcit merupakan tindakan yang tepat walaupun pada awalnya dikritik keras pihak pembangkang.
Selain RON95, turut menyaksikan penurunan harga ialah RON97 iaitu juga sebanyak 35 sen, menjadikan harga runcit RM2.11 seliter manakala diesel pula diturunkan 30 sen menjadikan bahan bakar itu cuma RM1.93 seliter.
Menteri Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan, Datuk Seri Hasan Malek ketika mengumumkan berita baik itu berkata, harga baharu semua bahan bakar tersebut akan berkuat kuasa mulai 1 Januari 2015.
“Kerajaan akan mengikuti perkembangan kos produk serta kadar tukaran mata wang pada setiap masa untuk menetapkan harga runcit petrol dan diesel pada bulan-bulan berikutnya,” katanya dalam satu kenyataan di sini hari ini.
Pada 21 November lalu, kerajaan memutuskan untuk melaksanakan kaedah apungan terkawal dalam menetapkan harga runcit bagi petrol RON95 dan diesel berkuat kuasa 1 Disember memandangkan kos produk petroleum lebih rendah.
Dalam pada itu, Hasan memberi ingatan keras kepada semua syarikat dan pengusaha stesen minyak agar mematuhi penetapan harga baharu tersebut atau berdepan tindakan tegas sekiranya didapati melanggar peraturan berkenaan.
– See more at: http://www.utusan.com.my/berita/nasional/ron95-dan-ron97-turun-35-sen-8232-diesel-turun-30-sen-1.43256#sthash.tdoCzP6J.dpuf


Kaedah mekanisma apungan terkawal bagi bahan api utama golongan pengguna runcit Malaysia jelas menunjukkan kesan setelah Kerajaan Persekutuan mengambil keputusan untuk menggunakan cara ini, sebagai penanda aras harga runcit minyak.

Ini merupakan sebahagian dari program penggurangan perbelanjaan Kerajaan Persekutuan keatas subsidi, yang mencecah RM21 billion setahun.

Maka dengan penurunan harga runcit RON95 dan Diesel sebanyak 15%, kesan keatas kos pengeluaran dan peruncitan barangan semestinya akan terjejas secara positif. Sebelum ini pengeluar, pemborong dan peruncit barangan merungut untuk gatal mahu menaikkan harga tawaran produk mereka sebagai alasan setiap kali harga runcit bahan bakar menjalani kenaikan.

Sekarang, sewajarnya ia berlaku sebaliknya. Penurunan kos bahanbakar wajar ditafsirkan secara langsung dengan harga barangan yang lebih murah untuk pengguna.

NGO NGO Melayu seperti Persatuan Pengguna Islam Malaysia, PERKASA, ISMA, MPM dan sebagainya wajar menggunakan peluang ini untuk membuktikan aktivis aktivis mereka sebagai kumpulan tekanan prihatin dengan perkembangan terkini dan bersedia untuk bertindak.

Tindakkan secara berstruktur, sistematik dan konsisten memantau kesan pengumuman penurunan harga runcit RON95 dan Diesel keatas barangan pengguna dan kemudiannya memerikan tekanan agar pihak pengeluar, pemborong dan peruncit mengambil peluang untuk keuntungan berlebihan akan membukti mereka benar wira negara sebagai masyarakat marhaen dan mewakili majoriti.

Kuasa kepenggunaan dalam tangan majoriti orang Melayu itu sebenarnya amat kuat dan mereka tidak perlu untuk malu-alah apabila ada dikalangan minoriti dari golongan majoriti ini dewasa ini cuba bangkit dan menafikan kedudukan dan sentimen sebenar diakar umbi.

Kuasa kepenggunaan merupakan peluang paling baik untuk membuktikan kuasa sebenar pada ‘silent majority’. NGO NGO Melayu kini ada peluang terbaik untuk membuktikannya.

Published in: on January 1, 2015 at 12:00  Comments (2)  

Khazanah Konsultants’ Know-how

Khazanah Nasional Bhd.’s hush-hush plan about the restructuring of the national carrier into a New Co. is getting un-nerving to many who are watching the development closely. It is not about the intent but Khazanah’s track record on Malaysia Airlines.

On 29 August 2014 Khazanah announced that Malaysia Airlines Bhd would be listed and a New Co. be formed to take over the asset, operations and liabilities by 1 July 2015, with a 12 point ‘MAS Recovery Plan’.

Two weeks ago, Minister in Prime Minister’s Department in-charge of Economic Planning Unit Dato’ Seri Abdul Wahid Omar presented the Malaysia Airlines Bhd. Bill 2014.

The Star story:

Published: Wednesday November 26, 2014 MYT 1:03:00 PM
Updated: Wednesday November 26, 2014 MYT 3:08:45 PM

Bill to allow new operator to take over Malaysia Airlines tabled for first reading


KUALA LUMPUR: A Bill which seeks to provide for the establishment of a new entity to replace Malaysian Airline System Bhd as the national carrier has been tabled in Parliament for its first reading.

The Bill further seeks to appoint an administrator with the powers to administer and manage Malaysian Airline System Bhd and its owned as well as partially-owned subsidiary companies.

Among others, the Bill provides that the corporation by the name Malaysia Airlines Bhd shall have as its main objective, the operating of the national carrier of Malaysia, and shall carry on other businesses as its board of directors sees fit.

The Bill, if passed, will apply for a period of five years from the date of coming its coming into effect or until the listing of shares of the company on Bursa Malaysia, whichever is earlier.

The proposed law, known as the Malaysian Airline System Bhd (Administration) Bill 2014, was tabled by Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar in the Dewan Rakyat on Wednesday.

The Bill seeks to ensure the continuity of the essential air services by the company as the national carrier and the provision of uninterrupted connectivity to and from and within Malaysia by the national carrier.


Two days ago German airline-turn-around-manager Chistoph R Mueller was announced as the CEO of the NewCo. It was the first time in the 42 years history of Malaysia Airlines System since began operation on 1 October 1972 which resulted from the separation of Malaysia-Singapore Airlines that a foreigner heads the national carrier.

Deputy Prime Minister Tun Dr Ismail Abdul Rahman at the officiation of Malaysia Airlines System 1 Oct 1972

Deputy Prime Minister Tun Dr Ismail Abdul Rahman at the officiation of Malaysia Airlines System 1 Oct 1972

What is alarming is the steps that Khazanah are making towards revolving the spirally corporate conundrum, which started from their own bad and further bad decisions.

The idea of de-listing Malaysia Airlines Bhd. and taking it private as an avenue towards recovery by the rationalisation of assets,operations, routes, staffing, liabilities and legacy issues and hopefully, the transformation came about after the two tragedy of MH370 on 8 March and MH17on 17 July.

The disappearance and shooting down of two B777-200s, one over South Indian Ocean and the later in Eastern Ukraine brought walls crashing on the national carrier which accumulated losses already in RM billions.


That opened the opportunity to the ‘McKinsey Minded’ streams of Cambridge alumnus operational directors within Khazanah to quickly moot a typical ‘McKinsey’ plan of corporate recovery, which include slaughtering, skinning, deboning and eventually mincing the one time sacred cow in the skies of many Malaysians .

It is something not peculiar for Malaysia Airlines since Khazanah Managing Director Tan Sri Azman Mokhtar and former comrades-in-arms both in Khazanah and Binafikir Mohd. Rashdan “Danny” Yusof did something similar 12 years ago. They advised then Economic Adviser to Prime Minister Tan Sri Nor Mohamed Yackop to cut the national carrier into pieces, hive off some businesses and sell away assets in the Wide Asset Unbundling (WAU) program.

It stopped the bleeding to death but gave the national a totally different problem to deal with. Malaysia Airlines now had to lease their operating assets such as aircrafts and part of the leasing agreement is to ‘make good’ of assets leased upon return. That cost more than a bit of money since paying off leasing is undoubtedly higher than hire-purchase since the lessor incorporate the leasing profit in the cost born by the carrier. There is also the issue of investing more money to ‘make good’ against scrap value realisable for disposing off assets.

Tengku Dato’ Azmil Zaharuddin Raja Abd Aziz, Malaysia Airlines CFO who replaced Dato’ Seri Idris Jala as CEO

When former Shell-man Idris Jala was brought in to restructure the national carrier. his plan did make a change.

In 2005, the Malaysian government elected him as CEO of Malaysia Airlines due to massive losses of the company. In February 2006, he announced the airline’s business turnaround plan from a 9-month loss of USD400 million in 2005 to achieving a record profit of USD260 million in 2007 until September 2009.

In May 2008, Idris appeared on national television announcing the airline’s first ever ‘zero fare’ for domestic and a selection of international flights, a move that raised his spat between him and AirAsia’s loud-mouth boss, Tony Fernandes to a new level.

Idris left in 2009 when Prime Minister Dato’ Sri Mohd. Najib Tun Razak brought him into the PM’s Department as the Executive Director of economic transformation unit PEMANDU, with a ministerial status. In his place,  CFO Tengku Dato’ Azmil Zaharuddin Raja Abdul Aziz assumed the CEO post of the national carrier.

Game changer: Malaysia Airlines first A380-800 getting the traditional welcome at  KLIA, as it arrives from Airbus Centre 29 June 2012

Game changer: Malaysia Airlines first A380-800 getting the traditional welcome at KLIA, as it arrives from Airbus Centre 29 June 2012

Tengku Azmil carried out most of Idris’s plans which include rebuilding of Malaysia Airlines’ own fleet starting with B737-800s, the new A330-300s and the A380-800s. The A380s were supposed to replace the ageing and fuel guzzling B747-400, which have been in service with the national carrier since 20 years earlier.

Malaysia Airlines even posted RM234 million in FY 2010.

Tengku Azmil was not giving the right opportunity to explore the full potential of Malaysia Airlines (mostly from the restrictions imposed by MOF and MOT, which some are believed to be spill over when AirAsia had the ‘open sky reign’ during PM ‘Flip-Flop’ Abdullah Ahmad Badawi’s premiership and the dreaded years under the ‘Level Four Boys’).

In a surprise corporate maneuvre in early August 2011, one Sunday Tengku Azmil was told by his Khazanah bosses to pack up and leave within 24 years. The unthinkable had happened.

Those who areresponsible and should pay this RM10 million fine for Malaysia Airlines

Those who areresponsible and should pay this RM10 million fine for Malaysia Airlines

Khazanah hastily agreed to a ‘share-swap’ with Tune Air brokered by CIMB where 20% of Malaysia Airlines holding are swapped with 10% of AirAsia and Tony Fernandes is to come into Malaysia Airlines and take over the national carrier.

Fernandes and co almost devoured the national carrier for their own gluttony on the excuse of “Rationalising the airlines” as the affluent amongst Malaysians vehemently oppose the ‘share-swap’, where it brought no benefits to Malaysia Airlines what so ever.

After two months of the Executive Committee running the national carrier, former Malakoff Bhd. CEO Ahmad Jauhari Yahya was brought in to manage the national carrier.

Ahmad Jauhari “AJ” Yahya in Malaysia Airlines A380 First Class, with award winning cabin crews

The ‘share-swap’ short lived for only ten-and-a-half months before Prime Minister Najib announced the reversal.

What is interesting this round of decapitating and systematic and structurally dismembering the national carrier is that Khazanah opted the ‘Consultants’ module’ again.

Five or six consultants have been appointed and awarded jobs to do the job, of preparation for the “MAS Recovery Plan” as well as coming up with the ’12 point plan’. What is interesting is that it is almost proven that non amongst the partners, managers and worse of all, the young kuchirats whisking in and out freely within the national carrier have any relevant experience of working with and/for an airline before.

Malaysia Airlines B777-200ER 9M-MRD as MH17 AMS-KUL which was shot down at an elevation of 33,000ft  in Eastern Ukraine at 1230GMT on 17 July 2014 with 298 souls onboard

Malaysia Airlines B777-200ER 9M-MRD as MH17 AMS-KUL which was shot down at an elevation of 33,000ft in Eastern Ukraine at 1230GMT on 17 July 2014 with 298 souls onboard

They have established themselves almost permanently parked and calling the shots as part of the ‘Restructuring Management Office’ within the corporate HQ of Malaysia Airlines.

Their modus operandi is very funny. They understand very little of the operations of an airline, let alone Malaysia Airlines. However, they do not present themselves to each operating unit to understand or even do a technical audit of the work and the operation program.

Instead, they go around in other departments asking what they thought of the department or operational function that they intend to understand and restructure.

The unveiling of Malaysia Airlines 9M-MXA in original Malaysian Airline System livery

The unveiling of Malaysia Airlines 9M-MXA in original Malaysian Airline System livery

What is alarming is this arm-chair consultancy is very ‘BBA-final-year-classroom-coursework’, in attitude, aptitude and functionality. Some of these consultants map out their New Co. on a large sheet of paper and brought some of the senior management and technical professionals for consultancy and interview.

In one of these sessions, one senior technical professional made a damning simple comment after three hours of consultancy, “I don’t really care what you people are doing and what this ‘New Co.’ is all about. My question is, I don’t see any of you people mention the sentence ‘Application of an airline license'”.

Shocked and in great awe, flabbergasted.

None of these consultants actually realised that they need to apply for an Airline Operation Certificate (AOC) from the DCA for a company to be allowed to operate as an airline and carry commercial goods and passengers.

How it started, Malaysia Airlines System B737-200

How it started, Malaysia Airlines System B737-200

There on, we don’t actually have much faith of where this New Co. will go and what it plans are, as the national carrier able to carry the Jalur Gemilang on its tail across probably six continents (when Malaysia Airlines was at its peak) as an extension of the nation’s economic, trade and foreign policy.

At the same time, maintaining profitability, good cash position and the high spirit of proud Malaysian workforce in a very unique MNC.

Will the New Co. still play the five role and expectations of Malaysia Airlines System (later Malaysia Airlines)?

It actually has been proven before by a team of Malaysian entrepreneurs, airline professionals and managers and proud workforce. The fact this failed then it was not because of poor planning, mad management or sloppy operation. It was the affect of the 1997-8 Asian Financial Crisis (AFC 978).

Malaysia Airlines System (MAS) B707-236, started intercontinental service to London Heathrow on 1 July 1974

Malaysia Airlines System (MAS) B707-236, started intercontinental service to London Heathrow on 1 July 1974

Nor Mohamed Yackop once as the Economic Adviser to the Prime Minister killed these people with the might of the Danaharta, when they defaulted on the NPL which was an effect of the AFC 978. Today, he is still the Deputy Chairman of the holding corporation of the sovereign wealth fund which has this habit of hiring consultants, especially the Mat Sallehs.

Probably Khazanah in their ‘McKinsey Minded’ euphoria of doing the right thing in the dawn of the dynamism of the new age should also consider having a Mat Salleh run Khazanah Holdings Bhd. and not just stop at the New Co., which is in the process of systematically killing Malaysia Airlines.

Khazanah Deputy Chairman and former the decision maker of Malaysia Airlines' 'WAU' the first time around. definitely not a Mat Salleh, by far

Khazanah Deputy Chairman and former the decision maker of Malaysia Airlines’ ‘WAU’ the first time around. definitely not a Mat Salleh, by far

Malaysia Airlines went through a series of management, asset-liability and operational transformation throughout the past twelve years. What is constant, are the Khazanah decision makers. It is the time for change, for Khazanah.

Published in: on December 9, 2014 at 13:00  Comments (19)  

Caught Between the Hats on Professional Reports

Protasco Bhd. Chairman and MACC Chairman of OEP Tan Sri Hadenan Abdul Jalil

The Chairman of the Protasco Berhad board Tan Sri Hadenan A Jalil is getting tangled and entwined between the web of several hats in the listed company’s boardroom tussle, especially now the technical due diligence on the concession for the Acheh oil deal surfaced.

The Star reported that Protasco Berhad was given a USD22 million profit guarantee spread over four years for the deal in Kuala Simpang Timur in Acheh. It is impossible that Hadenan is ignorant of this supplementary agreement.

KPMG report on the due diligence for the Acheh deal

KPMG report on the due diligence for the Acheh deal

What is more intriguing, Hadenan who preside over Protasco Berhad’s BoD must be aware of the KPMG valuation report on the due diligence made on this deal and project.

Upon the various documents presented as part of the technical, financial and legal due diligence made, Hadenan played along with Protasco Berhad Managing Director Dato’ Sri Ir. Chong Ket Peng’s management decision to take Tey and Ooi to court in September.

Some of the BoD of Protasco Bhd; Tan Sri Hadenan A Jalil, Dato' Ir. Chong Ket Peng, Dato' Ibrahim Mohd. Noor and Larry Tey

Some of the BoD of Protasco Bhd; Tan Sri Hadenan A Jalil, Dato’ Ir. Chong Ket Peng, Dato’ Ibrahim Mohd. Noor and Larry Tey

This action was preceded with Ir. Chong’s campaign using mainstream media mainly the business papers to paint a black picture against Tey and Ooi. Washing dirty linen as part of a boardroom tussle would just invite reaction and reciprocity, which would spiral downwards perception on the Group.

Then more legal suits against BoD member Adrian Ooi mounted by Protasco Berhad led  Ir. Chong, a few days ahead of the management requested EGM to remove Tey and Adrian Ooi from the BoD.

NST story:

Protasco sues PT Goldchild

22 NOVEMBER 2014 @ 12:26 AM

PROTASCO Bhd has filed a legal suit against PT Goldchild Integritas Abadi and director Ooi Kock Aun to recover a US$5.16 million (RM17.3 million) deposit under a coal trading deal in Indonesia.

In the suit filed at the Shah Alam High Court yesterday, Protasco also seeks a declaration that the coal trading agreement is void and in breach of the Companies Act, 1965.

The company had agreed to undertake coal trades with PT Goldchild under an agreement on February 4 this year via Protasco Trading Sdn Bhd which paid a US$5.16 million deposit to PT Goldchild. The deposit was to be deducted in stages against future coal trades.

Protasco said it had discovered that both Ooi and another director Tey Por Yee have interests in PT Goldchild. The discoveries were made after Protasco filed its first legal suit against Ooi and Tey in September 2014.

Ooi was a director of Protasco at the time the company entered into the coal-trading agreement with PT Goldchild, but did not disclose his interest in the transaction which he was under obligation to.

“Protasco has been advised that by Ooi’s failure to declare his personal interest contravenes Section 132E of the Companies Act, therefore the coaltrading agreement has been rendered void. Ooi is also personally liable to account to the company for any direct or indirect gain made from the agreement and/or to indemnify the company for losses and/or damages suffered,” Protasco said in a statement.

Protasco had earlier in September filed a suit against PT Anglo Slavic Utama to recover US$27 million in monies paid, and against Tey and Ooi for conspiracy to defraud, hiding their beneficial interests in PT ASU, making secret profits and breach of their fiduciary and statutory duties.


Amongst the perception that is haunting Hadenan at the moment that he is walking in the shadows of Malaysian former Corporate King Tun Daim Zainuddin.

Dato' Ibrahim Mohd. Nor receiving a souvenir from Dato' Sri Ir. Chong Ket Peng at Protasco's annual dinner November 2013

Dato’ Ibrahim Mohd. Nor receiving a souvenir from Dato’ Sri Ir. Chong Ket Peng at Protasco’s annual dinner November 2013

Some punters already speculating that there are some hanky-panky. The market-talk also include some kickbacks arisen from the deals that were brokered upon the departure of Tun Daim’s known corporate operative Dato’ Mohd. Ibrahim Mohd. Nor from Protasco Bhd., via Cruise Dream Sdn. Bhd.

Considering there are technical due diligence documents to back against Protasco MD Dato’ Sri Ir. Chong Ket Peng’s opposition to scuttle the Acheh oil and gas concession deal, there are questions raised what is Hadenan’s role in this.

PT Anglo Slavic Indonesia, which Protasco Bhd. owns 63% holding and management control is reflected in the listed co's 2013 Annual Report

PT Anglo Slavic Indonesia, which Protasco Bhd. owns 63% holding and management control is reflected in the listed co’s 2013 Annual Report

Protasco is a company which is known to be have awarded contracts to maintain Federal roads.

It is rather peculiar for former Auditor General Hadenan who now chairs the MACC Evaluation Operation Panel, to have accepted the job as Chairman of Protasco knowingly that these sort of businesses and companies are often laden with the burden for the practice of corruption.

Utusan Malaysia business section yesterday

Utusan Malaysia business section yesterday

More over Hadenan accepted the appointment when it was speculated that Tun Daim was involved in the company.

Like it or not, public perception on the company, nature of business and key personalities continues especially in the diversity of the Group’s involvement, which include contracts from the Federal Government.

Now that there are boardroom tussle and allegations being flung against each other which include a report made with the MACC against the Protasco Group MD Ir. Chong Ket Peng and Hadenan been seen to side-stepped this bit, the perception on diminishing corporate governance and integrity compounds.

*Updated midnight 

Published in: on November 21, 2014 at 12:00  Comments (6)  

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